XAU/USD – Little Movement as Gold Close to 4-Year Lows

Gold prices is stable on Tuesday, continuing the lack of movement which started off the week. In the European session, the spot price trades at $1167.82 per ounce. Gold is trading close to lows not seen since July 2010. In economic news, Trade Balance is expected to show little change, with an estimate standing at -$40.0 billion.

It was another solid performance from US GDP on Thursday, which posted a strong gain of 3.5% in Q3, ahead of the estimate of 3.1%. Although this was short of the Q2 reading of 4.0%, the two readings mark the strongest six-month gain we’ve seen in ten years. Unemployment Claims increased slightly to 287 thousand, slightly higher than the previous reading of 284 thousand. However, the four-week average remains at multi-year lows, pointing to an improving labor market.

On the downside, 1156 is an immediate support level. 1130 is stronger.

Current range: 1156 to 1200.

Further levels in both directions:

Below: 1156, 1130, 1111 and 1073

Above: 1200, 1215, 1240, 1252 and 1275

OANDA’s Open Positions Ratio

XAU/USD ratio is almost unchanged on Tuesday. This is consistent with the lack of movement we are seeing from the pair. The ratio has a majority of long positions, indicative of trader bias in favor of gold breaking out and moving higher.

XAU/USD Fundamentals

13:30 US Trade Balance. Estimate -40.0B.

15:00 US Factory Orders. Estimate -0.4%.

15:00 US IBD/TIPP Economic Optimism. Estimate 46.6 points

All Day – US Congressional Elections.

*Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.

MarketPulse is a forex, commodities, and global indices analysis, and forex news site providing timely and accurate information on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

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